Prosus reports 17% growth in Swiggy’s food delivery segment FY24’s first half

• ByStartupStory     |    November 30, 2023

Prosus, holding a significant stake in Swiggy, revealed that the food delivery giant experienced a substantial 17% growth in its core food delivery operations during the initial half of FY24. This growth amounted to a gross merchandise value (GMV) of $1.43 billion. This surge was primarily attributed to increased active users, leading to a notable rise in orders and an uptick in average order values.

In a presentation on Wednesday, Prosus highlighted that Swiggy managed to remarkably reduce its core food delivery EBITDA losses by 89% in the first half of the fiscal year. This improvement was driven by enhancements in contribution margins and operational efficiency, reflecting consumers’ willingness to pay for convenience and restaurants’ efforts in advertising for growth.

Despite Invesco previously lowering Swiggy’s valuation to under $5.5 billion, a recent increase pushed the startup’s valuation to $7.85 billion in July. However, this valuation still remains below its peak value of $10.7 billion attained during a $700-million funding round in January the prior year. Additionally, Swiggy’s quick-commerce segment experienced significant growth, marked by rising order volumes and larger basket sizes, resulting in reduced losses for Instamart.

Prosus highlighted Swiggy’s strategic focus on expanding product offerings, strengthening store networks, and improving delivery times as crucial factors driving customer acquisition and retention. Overall, Swiggy achieved a notable 28% growth in its overall GMV for the first half of FY24 while successfully mitigating its trading losses to $208 million.

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